Genius Group’s Bitcoin Expansion Halted by U.S. Court Ruling

Genius Group, a Singapore-based AI firm, has hit a legal snag in its plans to expand its Bitcoin treasury.

A recent U.S. court ruling temporarily bars the company from raising funds, issuing shares, or buying more Bitcoin, complicating its financial strategy. The restriction stems from a broader legal dispute related to the company’s merger with Fatbrain AI.

The merger, completed in March 2024, soon turned contentious as Genius Group accused Fatbrain AI executives of fraud and initiated arbitration to undo the deal. In response, Fatbrain AI executives filed a motion to block Genius from making any financial moves, including acquiring more Bitcoin. The court granted this request in mid-March.

As a result, Genius Group has had to downsize its operations, close some divisions, and even sell 10 Bitcoins from its 440-coin treasury to keep afloat. The company acknowledged that if the legal freeze remains, further Bitcoin sales might be necessary. CEO Roger James Hamilton expressed frustration, arguing that the ruling puts the company at odds with Singaporean regulations, which mandate share compensation for employees.

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Fatbrain AI has also faced backlash from its own shareholders, who accused its leadership of fraud during the merger, leading to lawsuits. Although Genius Group has been dismissed from these suits, the legal fallout continues to cast a shadow over both companies.

Amid the turmoil, Genius Group’s ambitions to expand its Bitcoin holdings have stalled. The firm originally planned to hold 90% of its reserves in Bitcoin, aiming for a total of $120 million. Despite this setback, Hamilton remains committed to Bitcoin as a long-term strategy.

Financially, the impact has been harsh. Genius Group’s stock has plummeted, dropping nearly 10% recently and continuing to fall after hours. Once valued at over $96 in 2022, the stock now trades at a fraction of that, reflecting the ongoing challenges the company faces.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.